South Korea gets rich from crypto... North Korea gets weapons

CoinTelegraph

by Yohan Yun

February 4, 2026

AI-Generated Deep Dive Summary

South Korea’s vibrant crypto scene has made it a global leader in retail trading and political influence, while its neighbor North Korea leverages cyber operations to generate significant revenue. In South Korea, crypto is deeply integrated into the culture and economy, driven by high-speed internet adoption in the late 1990s, which fostered a society attuned to rapid financial success. This fascination with wealth, combined with long work hours and limited career opportunities, turned crypto into an attractive alternative for younger professionals seeking financial independence. North Korea’s approach is more covert but equally impactful. The country extracts billions through state-backed hacking, contributing around 13.5% of its GDP in 2023. Unlike South Korea, where crypto is seen as innovation and culture, North Korea uses it as infrastructure to bypass sanctions and move money outside traditional financial systems. This reliance on crypto highlights the dual nature of blockchain technology as both a tool for economic growth and a vector for state-sponsored cyberattacks. South Korea’s influence in crypto extends beyond its borders, with won-denominated trading volumes rivaling major fiat currencies. The collapse of Terraform Labs’ Luna cryptocurrency, founded by South Korean national Do Kwon, marked a pivotal moment. Despite the failure, it showcased South Korea’s potential as a global crypto player and underscored the resilience of its community in navigating setbacks like the 2022 Terra implosion

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Originally published on CoinTelegraph on 2/4/2026